Are you working on a commercial real estate transaction in Ohio or Kentucky? Northwest Law is here to guide you through the different types of commercial real estate transactions and let you know how our attorneys can support you and your interests.
Buying or Selling Commercial Property
Buying or selling property could involve purchasing a retail space, office building, or other types of commercial property. Without counsel, you could face unexpected issues during due diligence, title searches, and price negotiations.
Leasing Commercial Space
Whether renting out property or looking for a new office or retail location, the lease agreement outlines key details like rent, lease duration, and maintenance responsibilities. Negotiating terms and understanding the legal language of the lease can be challenging, as well as ensuring that the agreement complies with local laws.
Development and Construction Projects
Development is typically building new structures or renovating existing ones. These projects require dealing with permits, zoning laws, and construction contracts. Challenges can include navigating regulatory requirements, managing project timelines and costs, and handling any disputes that arise with contractors or local authorities.
Real Estate Financing and Investment
If you’re securing financing or making investment decisions, a lawyer can provide advice to help you understand the legal implications and risks. They can also assist in structuring deals in a way that aligns with your financial goals while protecting your investments.
Each of these transactions comes with its own set of considerations, and it’s important to be aware of potential challenges that can arise during the process.
A real property lawyer can be an invaluable asset in commercial real estate transactions, whether you’re buying or selling property, negotiating leases, managing development projects, or securing financing.
They help with due diligence, contract review, legal requirements, and resolving disputes, to make sure that your transactions are legally sound and aligned with your goals. Having a skilled lawyer on your side can simplify the process so you can focus on your business.
After the Transactions: Property Management
This includes overseeing the day-to-day operations of commercial properties like office buildings, retail centers, or industrial parks. Property management includes tasks like tenant relations, maintenance, rent collection, and ensuring compliance with local regulations.
While property management itself isn’t a real estate transaction, it involves many ongoing legal and operational responsibilities that can benefit from the guidance of a real estate lawyer. A lawyer can help draft and review lease agreements, handle tenant disputes, and ensure compliance with local zoning laws and building codes.
Contact Our Commercial Real Estate Attorneys Today
Whether it’s your first big deal, or you’re a seasoned developer in Ohio or Kentucky, contact Northwest Law today to schedule a consultation with our experienced team. Let us help you achieve your commercial real estate goals with confidence and peace of mind.
Are you buying or selling a property in Ohio or Kentucky? Knowing what a title commitment is and why it matters can help make your real estate transaction smoother. At Northwest Law, our team is highly experienced in real estate law in Ohio and Kentucky, and we’re here to guide you through the legal side of property deals.
What is a Title Commitment?
A Title Commitment is a commitment to issue title insurance.
It is essentially a promise to issue a title insurance policy under specific conditions. It outlines what needs to be addressed before the final issuance of the policy, ensuring that any issues affecting the title are identified and resolved. It is not the actual title insurance policy, but rather a commitment from the title insurance company to issue one once all outlined conditions are met.
This means the commitment serves as a preview of the policy, showing what will and will not be covered once the transaction is completed and the policy is issued.
In Ohio and Kentucky, a Title Commitment is a formal document issued by a title insurance company that outlines the conditions under which a title insurance policy will be issued for a property. It details the legal ownership of the property and any encumbrances or restrictions that may affect the title. To prepare a Title Commitment, a title company conducts a detailed search of public records related to the property. It typically includes key information about who owns the property, any liens (money owed on the property), and other issues that might affect your ownership rights.
Schedule A – Basic information about the property, such as the legal description, current ownership, and proposed policy coverage.
Schedule B-1 – Lists requirements that must be met for the title insurance to be issued, like paying off outstanding mortgages.
Schedule B-2 – Exceptions that will not be covered by the title insurance, such as easements, restrictions, or prior liens.
Why is a Title Commitment Important?
This document is essential during real estate transactions in Ohio and Kentucky as it allows buyers and lenders to understand any potential title issues before closing.
Clear Ownership: A title commitment proves that the seller legally owns the property and has the right to sell it. For example, if a seller doesn’t have a clear title, you could end up buying a home that someone else has a claim to. The title commitment ensures this won’t happen by confirming clear ownership rights.
Identifying Issues: Reviewing the title commitment helps you spot problems like unpaid property taxes, mortgages that haven’t been released, or liens that might still be on the property. For example, if there’s an unpaid tax lien on the house, you’ll know before closing, and you won’t be able to close until issues are resolved.. However, addressing these issues early prevents future legal headaches.
Title Insurance Protection: An owner’s policy protects your interests and gives you peace of mind in homeownership. In basic terms, title insurance protects you from losing money if an issue is missed during the search and review phases. For example, if a long-lost heir suddenly claims they own the property, title insurance may cover legal defense costs and financial loss.
How Ohio and Kentucky Real Estate Counsel Can Help
At Northwest Law, our team of experienced real estate attorneys helps clients in Ohio and Kentucky understand and manage real estate transactions. We carefully review title commitments, ensuring no hidden problems could hurt your deal.
Whether buying your first home, investing in property, or developing a commercial project, having skilled legal counsel can help you avoid costly mistakes. Our attorneys are committed to protecting your rights and guiding you through every step of the property transaction process.
Reach out to the Real Estate Lawyers at Northwest Law Today
Protect your real estate investment now. Contact Northwest Law today to set up a consultation with our experienced real estate lawyers. Don’t overlook the importance of a title commitment—it’s your key to ensuring your property purchase is secure. Get the advice and guidance you need to protect your purchase.
Whether you’re a new business owner or an experienced entrepreneur, understanding the legal basics of office leases is important if you’re considering commercial real estate. The experienced commercial real estate attorneys at Northwest Law are here to guide you through the ins and outs of office lease agreements and help ensure you make informed decisions before you sign a commercial lease.
The Foundation of Office Lease Agreements
If you’re entering into an office lease in Ohio or Kentucky, you should know the basic elements that shape the agreement. From lease terms and rental rates to maintenance responsibilities and lease duration, each aspect plays a vital role in defining the rights and obligations of both tenants and landlords.
Lease Terms: Lease terms outline the agreement’s specific conditions, including the lease duration, renewal options, lease commencement date, and conditions for early termination.
Rental Rates: Rental rates specify the amount paid by the tenant to the landlord for occupying the office space, covering base rent and additional charges like operating expenses and property taxes.
Maintenance Responsibilities: Maintenance responsibilities clarify which party—tenant or landlord—is responsible for maintaining and repairing aspects of the leased space, such as structural repairs, utilities, and compliance with building codes.
Lease Duration: Lease duration defines the period during which the lease agreement is valid, indicating the start and end dates of the lease term, with provisions for renewal or extension if agreed upon.
Our team of commercial real estate attorneys is highly experienced in drafting and negotiating office leases tailored to meet your specific needs while safeguarding your interests. Now that we’ve taken a look at the basics, let’s move on to some of the legal considerations you may face during lease negotiations, and how an attorney can help.
Legal Considerations for Office Lease Negotiations
The negotiation phase of an office lease agreement can be complex, but you and your attorney can work together to see that the terms of the lease align with your business objectives. From rental escalation clauses and renewal options to subletting provisions and dispute resolution mechanisms, we’ll work towards favorable terms that protect your investment and promote long-term success. Speaking of the long term, let’s see how a lawyer can help you stay compliant and mitigate legal risk throughout the duration of your lease.
Lease Compliance and Dispute Resolution Strategies
Northwest Law is committed to guiding you through lease compliance requirements to help you avoid any issues during the length of your lease. It’s a solid strategy built on proactive legal solutions to mitigate potential disputes. In the event of a disagreement between parties, our experienced Ohio and Kentucky commercial real estate attorneys excel in dispute resolution strategies, including mediation, arbitration, and litigation, to safeguard your rights and preserve your business interests.
Contact Northwest Law Now for Commercial Real Estate Counsel
Ready to enter into the world of commercial office leases in Ohio or Kentucky? Reach out to Northwest Law today to schedule a consultation. Let us be your trusted legal partner and help you create a solid foundation for your success.
The big deal is coming up, but do you know what legal issues might come with it? Northwest Law is here to help borrowers and lenders in OH and KY understand the legal considerations involved in commercial real estate financing. Let’s take a look at some of the factors together.
Loan Agreements and Terms
Developers must carefully review and negotiate loan agreements and terms. These agreements outline the terms of the loan, including interest rates, repayment schedules, and collateral requirements. A real property lawyer can help you make sure the terms of the loan align with your goals and interests.
Due Diligence
Conducting thorough due diligence is essential before entering into any financing agreement. This includes investigating the property’s title, zoning regulations, environmental concerns, and any potential legal issues that may affect the project. Failing to conduct proper due diligence can result in costly delays or legal disputes down the line.
Regulatory Compliance
Commercial real estate development is subject to a myriad of local, state, and federal regulations. Developers must ensure compliance with zoning laws, building codes, environmental regulations, and other regulatory requirements. Failure to comply with these regulations can lead to fines, penalties, and legal liabilities.
Environmental Concerns
Developers must assess potential environmental risks associated with the property, such as contamination or hazardous materials. Addressing these concerns upfront can help mitigate risks and prevent costly legal issues in the future.
Tax Implications
Commercial real estate transactions can have significant tax implications for developers. Understanding the tax consequences of financing arrangements, property ownership structures, and capital gains is essential for maximizing returns and minimizing tax liabilities. Consulting with a tax advisor or attorney can help developers navigate complex tax issues effectively.
Contractual Obligations
Developers entering into financing agreements must be aware of their contractual obligations and responsibilities. This includes meeting loan repayment deadlines, maintaining insurance coverage, and complying with any other contractual provisions. Failure to fulfill these obligations can result in default and legal consequences.
Dispute Resolution
Despite careful planning and due diligence, disputes may arise during the course of a commercial real estate project. Whether it’s a disagreement with lenders, contractors, or other parties involved in the project, developers must be prepared to address disputes effectively. Having provisions for dispute resolution in financing agreements can help resolve conflicts efficiently and minimize legal exposure.
At Northwest Law, we understand the complexities of commercial real estate financing in Ohio and Kentucky. Our dedicated team has the experience to guide you through the legal considerations involved in commercial real estate transactions and protect your interests.
Get in Touch with Northwest Law
Whether you are a borrower seeking financing or a lender looking to protect your investment, we are committed to providing personalized legal solutions tailored to your specific needs. Trust Northwest Law to be your legal partner in commercial real estate financing. Reach out to get started today.
In Ohio, real estate transactions involving dual agency, where one agent represents both the buyer and seller, are legal but come with significant risks for all parties involved. A recent case (Black v. Stouffer Realty, et al., 2013-Ohio-5723) illustrates some of these dangers:
Mrs. Black sought to purchase a condominium listed with Stouffer Realty, where Ms. Relic represented both Mrs. Black and the seller, Mr. Martha, under a dual-agency agreement. Despite complications during negotiations, a deal was struck with a sale price of $510,000 and a $150,000 down payment. However, issues arose when Mrs. Black failed to secure financing within the agreed timeframe, leading to the collapse of the deal.
Mr. Martha sued Mrs. Black for breach of contract, seeking compensation for his losses. Mrs. Black, in turn, filed a complaint against Stouffer Realty and Ms. Relic, alleging breach of contract, breach of fiduciary duty, and fraud. While Mrs. Black settled with Mr. Martha, her claims against Stouffer Realty and Ms. Relic went to trial. The jury found in Mrs. Black’s favor, awarding damages for breach of fiduciary duty, breach of contract, and fraud.
The case highlights the risks of dual agency in real estate transactions. Despite its legality, dual agency can lead to conflicts of interest and breakdowns in trust between agents and clients. In this case, Ms. Relic’s actions were scrutinized, with the jury finding violations of specific provisions outlined in Ohio’s Dual Agency Disclosure Statement.
Trust is crucial in real estate transactions, and mistakes can have significant consequences. While dual agency situations may occur, it’s essential for agents to strictly adhere to disclosure agreements and recommend legal intervention when conflicts arise. Maintaining trust between all parties involved is essential for a successful real estate transaction in Ohio. Also, once the parties have agreed to dual agency representation, if a party believes that they need someone to advocate for them regarding any issue with the transaction, the dual agent Realtor should recommend the retention of an Ohio real property lawyer or other professional in the field related to the party’s concerns.
Schedule a Consultation with Northwest Law Today
Avoid legal issues in real property transactions – get guidance from an experienced Ohio real property lawyer. A knowledgeable attorney can provide valuable advice, review contracts, ensure compliance with state laws and regulations, and advocate for your best interests throughout the transaction process. Whether you are a real estate industry professional or a first-time home buyer, Northwest Law’s Real Property Lawyers will take care of you. Contact us at (614) 610-4000 to schedule a consultation today to get started.
You’re in contract to purchase a home and everything is going great, until… Out of the blue, you get a phone call or an email from your lender: you need a Shared Driveway Agreement to complete your purchase.
This isn’t uncommon, but it can add confusion or surprise to the process of buying a home.
The good news is, they’re put in place to protect you – to create security and peace of mind.
Here are answers to common questions to help you better understand Shared Driveway Agreements.
What is a Shared Driveway Agreement?
I’m going to put on my lawyer hat here for a minute to explain… What is a Shared Driveway Agreement? Well, it’s a type of easement. But what is an easement? That’s the right to use someone else’s land. A Shared Driveway Agreement is a type of easement that affects multiple property owners.
So, when you have a Shared Driveway Agreement, what it means is that you have a legal document prepared by a lawyer granting mutual rights to neighbors to share a common driveway.
The driveway could be gravel, paved, dirt, or something else, but the right of access to that driveway crosses over a shared boundary line. This may affect two properties, or more. I’ve even seen a case where we drafted a Shared Driveway Agreement for 5 property owners!
Why would property owners need to share access to a driveway?
There’s a general principal in the law that all parcels of real estate must have access to public roadways. Otherwise, legally, it’s considered trespassing across other’s property when you try to get across your property to that public roadway.
A property owner, or someone buying real estate would need shared access to a driveway when their land is located in a position that is otherwise land locked, meaning that property doesn’t have access to a public road.
How can you find out if you need one?
As we’ve covered, a property owner must have legal access to physically get to a public road. You need to have a Shared Driveway Agreement drafted when there is not already an easement recorded but there is physically a driveway that is crossing boundary lines and would cause someone to trespass, by definition of the law.
Typically, your title insurance company will identify a lack of legal access/easement during the title search and call it out on a title insurance commitment. Then, the mortgage lender reviews the title commitment, and will require that the parties have a Shared Driveway Agreement as a loan contingency.
Why would your lender and title company require buyers to obtain a Shared Driveway Agreement?
Well, it’s important to the lender because in securing your loan, they have an obligation to protect the mortgage if they ever have to foreclose and take back the property. So, the lender looks at this situation and says it’s a loan underwriting requirement to have a Shared Driveway Agreement in order to put a mortgage on this property.
The title insurance company wants to insure the title to your property, and to do so, they need to show there’s at least a legal easement in place, to prevent disputes in the future.
What information is covered?
You can have a variety of different terms, but a typically a best practice is to define the location of the access easement and the maintenance provisions.
Ideally, it will define who is going to be paying for what and who is doing what in regard to maintaining the easement. In most situations a shared driveway is paved, but sometimes it’s gravel, or something else. But someone will need to repave it, repair potholes, or replace the gravel from time to time. It’s also important to define who is responsible to clear snow, ice, or other items. In a best-case scenario, every detail would be spelled out.
How can you get a Shared Driveway Agreement?
Typically the process begins when the requirement gets made in order to complete the sale transaction of behalf of the buyer because the buyer and lender both have a reason to need an easement to be drafted. And then the lender specifically wants a shared driveway agreement which governs the maintenance provisions of that.
But who drafts it? Typically, a lawyer as it’s a legal document.
In Ohio and Kentucky the title company typically hires a lawyer on behalf of the parties, so the title company may outsource this to a lawyer. Sometimes title agencies have a law firm that they are associated with, or their owner is a lawyer, so then that law firm or attorney may draft the document on behalf of either the lender who is requesting it or the buyer who needs it in order to be able to buy the property and put a mortgage on it.
In the event you’re purchasing property and find you need an easement like this, it’s a good idea to hire your own attorney to draft it to ensure it protects your interest.
Because if you don’t, the referred lawyer will most likely draft the agreement in a neutral way, instead of drafting it for the interest of the future buyer (you). Sometimes there are additional interests that may come into play, therefore it’s advisable that the buyer needs to have their own counsel.
If you’re searching for a property and you don’t have real estate counsel, that’s ok. Be sure to write in a 7-day review period into your offer letters, and then when you go into contract, reach out to a professional right away.
Often, hiring a lawyer can feel like an unnecessary expense in an already expensive and overwhelming process. But for buyers and sellers alike, the value of hiring an attorney to help you navigate your real estate transaction is to help you avoid running into issues that could become very expensive down the road. And when you’re investing hundreds of thousands of dollars into something you’ll own for potentially decades, it’s wise to be as proactive in protecting yourself as possible.
🚨 DISCLAIMER: The blog published by Northwest Law is available for informational purposes only and is not considered legal advice on any subject matter. By viewing blog posts, the reader understands there is no attorney-client relationship between the reader and the blog publisher. The blog should not be used as a substitute for legal advice from a licensed professional attorney, and readers are urged to consult their own legal counsel on any specific legal questions concerning a specific situation.
By: Jonathan Holfinger, Esq. | Attorney/Partner, OLTP, NTP
Industry-wide, we’ve seen a large increase in wire fraud incidents. In a majority of cases, the cyber criminals have gained access to the real estate transaction by compromising email accounts through phishing.
NWT President, Jonathan Holfinger, shares how real estate professionals can to protect their clients by enabling multi-factor authentication, especially on email accounts.
Check out our how-to guide for enabling multi-factor authentication for popular email platforms here:
How to Enable Multi-Factor Authentication For Gmail, Outlook, and iCloud
Step 1.) Open Your Google Account by heading to www.google.com/account
Step 2.) In the navigation panel, select security.
Step 3.) Under “Signing in to Google” select 2-Step Verification > Get started.
Step 4.) Follow the on-screen steps.
How to Enable Multi-Factor Verification for Your Outlook Account
Step 1.) Go to the Security basics page at https://account.microsoft.com/security and sign in with your Microsoft account.
Step 2.) Select “Advanced security options”
Step 3.) Under “Two-step verification”, choose “Set up two-step verification” to turn it on.
Step 4.) Follow the on screen prompts
How to Enable Multi-Factor Verification for Your AppleID and iCloud Account Using Your iPhone
Step 1.) Go to Settings > [your name] > Password & Security.
Step 2.) Tap Turn On Two-Factor Authentication.
Step 3.) Tap Continue.
Step 4.) Enter the phone number where you want to receive verification codes when you sign in. You can choose to receive the codes by text message or automated phone call.
Step 5.) Tap Next.
Step 6.) Enter the verification code to verify your phone number and turn on two-factor authentication.
Want to Enable Multi-Factor Verification for Your AppleID and iCloud Account Over the Web? Here’s How:
Step 1.) Go to appleid.apple.com, then sign in with your Apple ID.
Step 2.) Answer your security questions, then tap Continue.
Step 3.) You’ll see a prompt to upgrade your account security. Tap Continue.
Step 4.) Click Upgrade Account Security.
Step 5.) Enter the phone number where you want to receive verification codes when you sign in. You can choose to receive the codes by text message or automated phone call.
Step 6.) Click Continue.
Step 7.) Enter the verification code to verify your phone number and turn on two-factor authentication.
Title Insurance Policy – A contract of title insurance under which the insurer, in keeping with the terms of the policy, agrees to indemnify the insured against loss arising from claims against the insured interest.
Unfortunately, the adage “what doesn’t kill you makes you stronger,” is not exactly accurate for all life lessons. Sometimes, your mistake is devastating and there is no recovering from it. Period.
To be clear, I am not talking about a situation where you choose between two reasonable choices and the option not chosen would have proven to be more beneficial. Rather, I am getting at a situation where the choice is between doing something you know, or should know, is likely in your best interest, and doing something that amounts to betting it all on black at the casino. That is exactly the decision you are making when you choose between obtaining a title insurance policy or taking a risk and not protecting your investment.
When I first started out as a lawyer a file came across my desk which left a lasting impression on me. Nearly a decade later I can still hear the voices of the then homeowners who, when they called me, were inaudible because their voices were shaking so much. The basic facts of the matter are simple enough:
Seller sold her property to Buyers, who obtained a mortgage to purchase the property. The lender for Buyers obtains a Lenders Policy of Title Insurance. The Buyers do not obtain any policy of title insurance. A year goes by and everything is great. The Buyers receive a notice in the mail that a mortgage note is in default, with a lender they had never heard of, and that the mortgage and therefore the property was going into foreclosure. The Buyers call the title company, which informs them that the mortgage was released per the abstract report provided by the title searcher and provide them with the release. The Buyers contact the mortgage company which sent the notice regarding the release and the mortgage company informs the buyers that the release is fraudulent. The Seller had recorded a fraudulent release of her mortgage and absconded with nearly $400,000. The mortgage company takes legal action to nullify the fraudulent release and proceeds with foreclosure naming the Buyers (the current owners) and the Buyers’ mortgage lender.
What happens next is the cost or benefit of the decision discussed above. The Buyer’s mortgage lender filed a title claim on their lenders policy and was made whole within the month. The underwriter (insuring the claim under that policy) hired an attorney which pursed the Seller for fraud, etc., located the Seller and commenced a costly litigation to reclaim over $300,000 for the amount paid out to the Buyers’ mortgage lender. The Seller’s mortgage company proceeded with the foreclosure action, obtained and sold the home, recovering a portion of what was owed to them. The Buyers…lost everything.
In the above case, the Buyers only choice was to hire an attorney, they could not afford, to pursue a person who was already being pursued by their mortgage lender’s loan policy underwriter. In total, the Buyers lost their down payment, all built up equity, the value of improvements being made to the property, and tarnished the happy memories of buying a home and building something together.
The lesson is simple, don’t gamble with piece of mind.
When I first started at Northwest Title, I read a piece of literature (below) that is passed around with various ways a person can lose their home (or lender can lose their investment) if they don’t have title insurance; I made it to #2 and a chill went down my back. Lesson learned.
Common Title Problems:
1. False impersonation of the true owner of the land
2. Forged deeds, releases, etc
3. Instruments executed under fabricated or expired power of attorney
4. Deeds delivered after death of grantor or grantee or without consent of grantor
5. Undisclosed or missing heirs
6. Misinterpretation of wills
7. Deeds by persons supposedly single but secretly married
8. Birth or adoption of children after date of a will
9. Surviving children omitted from a will
10. Mistakes made in recording legal documents
11. Deeds in lieu of foreclosure given under duress
12. Deed of community property recited to be separate property
13. Errors in tax records, e.g., listing payment against wrong property
14. Undisclosed divorce of spouse who conveys as consort’s heir
15. Marital rights of spouse purportedly, but not legally, divorced
